- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 2. Time Value of Money in Finance
- Subject 2. Fixed Income Instruments and the Time Value of Money

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**CFA Practice Question**

Jason has $500 in a savings account which earns 5% compounded annually. How much additional interest would he earn in four years if he moved the money to an account that earns 6%?

A. $21.89

B. $25.88

C. $23.49

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**User Contributed Comments**
1

User |
Comment |
---|---|

wuyi |
500*(1.06^4-1.05^4)=23.485 |